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Discuss // What role should the Government play in promoting entrepreneurship?

What role should the Government play in promoting entrepreneurship?

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I have always questioned what role the government should play in the entrepreneurial world. Do you think government's direction should be around a) Access to Capital such as Grants, Loans for seed capital b) Simplification of their Policies and Procedures c) Public-Private Partnerships d) Create and manage competition by promoting a Public Sector Units e) Help with Diplomatic channels or something beyond?

Lawrence N. Field Family Chair in Entrepreneurship and Professor of Management at Baruch College, CUNY

Government can play the role of facilitator of entrepreneurship, but it must think and act entrepreneurially in order to do so effectively. Take a look at the article at this link to see how both communities and entrepreneurs can be developed in order to transform a community's economy.

How about get the hell out of the way, setup simplified mechanisms for starting and running a business, setup tax structures that reward more R&D and entrepreneurship but simplify the tax code so not just the bigger businesses and wealthier people can figure them out and take advantage of them. Shutdown the tax loop holes that corporations are using, but also lower the corporate tax to be more globally competitive so that companies don't go else where. Ensure sensible crowd sourcing regulations to prevent fraud but enable all americans to participate in investment, get out of businesses they are incompetent at running like healthcare and education and make room for startups to drive efficiencies into the market.

Missy, of those five things included in your list, I like B. I believe that less government is always better. When government gets involved usually one of two things happens sometimes both - they either want something (usually some control or over-site) or they slow things down.

I see the vitriol towards government to be extremely simple-minded thinking. Governments are not intrinsically bad and private enterprise is not intrinsically good. Just be aware that slavery was private enterprise. And the internet was due to the government programs.
There is good and bad in both. Good thoughtful individuals will try to promote the best in each institution and curb the bad.
Here is an article backed with books and data: "Why you can thank the government for your IPhone": http://time.com/4089171/mariana-mazzucato/

Fact: The 32-year-old Small Business Innovation Research (SBIR) program, which has awarded out more than 112,500 awards to small businesses, worth more than $26.9 billion, through fiscal year 2009. http://www.biztechmagazine.com/article/2014/09/how-government-funding-small-business-innovation

Fact: Elon Musk's SpaceX and Telsa Motors would not have started if they
had not originally been backed by a government loan
http://www.businessinsider.com/elon-musk-always-depended-government-money-up-front-about-it-2015-6

Fact: The private sector wouldn't invest in 3D printing originally, thinking it was too risky. Only the U.S. government did through Small Business Investment Research (SBIR) grants. http://www.biztechmagazine.com/article/2014/09/how-government-funding-small-business-innovation

Fact: more than 95% of the iPhone's components original came from DARPA
and DoD-backed research (not the private sector). Siri also came from
DARPA investments.
http://thebreakthrough.org/archive/the_iphone_and_the_invisible_h

... so perhaps those that seem think think there's no relationship between government and entrepreneurs might want to review the actual history?

Government can never be a leader in entrepreneurship...that's the sole
domain of entrepreneurs. However, government can and should support
entrepreneurs in their quest, while never forgetting that their role is
as a Feeder and not a Leader.

In Canada there are resources
that do a pretty good job of fulfilling this, while also providing
opportunities for coaching services. Working with startups, I've seen
first-hand the benefits of SR&ED tax incentive programs and NRC-IRAP funding that directly support and encourage innovation and R&D.

As
a Board Member of Innovation Island Technology Association, a local
tech incubator operating at arms length with provincial and federal
funding, I see the real and direct positive impact that this type of
government support brings to startups. This includes but is not limited to:

Support in applying for programs mentioned above

Mentorship and coaching (as important as anything else)

Introduction to Angel, VC and other types of capital

There
is a role, but stay away from trying to be entrepreneurs. Governments
are not wired to be entrepreneurial (maybe they shouldn't try too hard
to be such, but that's another debate). When we direct governments to feed - not stifle - entrepreneurial spirit, we all win.

As entrepreneurs, we constantly strive to build a business with viable business models. However, sometimes there may be situations where there is a chicken and egg problem so an industry doesn't get started yet it is strategically important. For example, consider the water industry. Few businesses are created in the United States because the business models are weak or there isn't a solid funding model. However, in Israel, there is significant government support for water start-ups since it is a critical and strategic resource. They are building a strong sector that will benefit Israel and the technology that is developed will be able to be marketed globally.

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